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TMI BlogSection 192 - TDS on SalariesX X X X Extracts X X X X X X X X Extracts X X X X ..... [ Section 192(1) ] An employer shall have the option to pay tax on behalf of an employee, without making any deduction from his income, on the income in the nature of perquisites, which are not provided by way of monetary payment. However the employer shall also continue to have the option to deduct the tax on whole or part of such income. [ Section 192(1A) ] For the purpose of paying tax by the employer u/s 192(1A), tax shall be determined at the average of income tax computed on the basis of the rates in force for the financial year, on the income chargeable under the head Salaries including the income referred to in u/s 192(1A), and the tax so payable shall be construed as if it were, a tax deductible at source, from the income under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case the employer so chosen shall take into account these details while making deduction of tax at source. [ Section 192(2) ] For the purposes of deduction of tax out of salaries payable in a foreign currency, the value of salaries in terms of rupees should be calculated at the prescribed rate of exchange as specified in Rule 26 of the Income tax Rules, 1962. [ Section 192(6) ] Relief under section 89 In respect of salary payment to employees of government or to employees of companies, co operative societies, local authorities, universities, institutions, associates or bodies, deduction of tax at source should be made after allowing relief [ Sub-section(1) of omitted vide Finance (No. 2) Act, 2024 ] Section 89 , where eligible. The concern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken into account. A tax payer having salary income in addition to other income chargeable to tax for that financial year, may send to the employer, the following particulars of (a) such other income and particulars of any tax deducted under any other provision (b) Loss, if any, under the head Income from House property, If assessee intimated to the employer his intent to exercise the option of shifting out of the default tax regime provided u/s 115BAC(1A) ; The employer shall take the above particulars into account while calculating tax deductible at source. It is also provided that except in case where loss from house property has been adjusted against salary, the tax deductible from salary should not be reduced as a consequence of makin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y head of income other than Salaries received in the same financial year; or (b) any tax deducted at source or tax collected at source under the provisions of Part B or Part BB of Chapter XVII, for the same financial year; or (c) loss, if any, under the head Income from house property in the same financial year, in Form No. 12BAA, for the purpose of computing the tax deduction at source under section 192(1). Furnishing of statement of particulars of perquisites or profit in lieu of salary by employer to employee A person responsible for paying any income chargeable under the head Salaries shall furnish to the person to whom such payment is made a statement giving correct and complete particulars of perquisites or profits in lieu of salary p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at source in case of salary is on all persons, whether individual, HUF, Firm or a company irrespective of the fact whether the person is carrying on business or not. If the employee does not have Permanent Account Number, TDS shall be deducted @ 20% without including education cess, if the normal tax rate in this case is less than 20%. Important Notification, Circular or Instruction 3.8 Salary Paid in Foreign Currency. For the purposes of deduction of tax on salary payable in foreign currency, the value in rupees of such salary shall be calculated at the Telegraphic transfer buying rate of such currency as on the date on which tax is required to be deducted at source ( see Rule 26 ). [ Circular No. 20/2015 dated 02.12.2015 ] & ..... X X X X Extracts X X X X X X X X Extracts X X X X
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